DB 1 Solutions - 1-1 Solutions to DB 1 What are the three...

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Solutions to DB 1 What are the four basic areas of finance? 1. Corporate finance = Business Finance 2. Investments 3. Financial institutions 4. International finance What are the three types of financial management decisions, and what questions are they designed to answer? Capital budgeting What long-term investments or projects should the business take on? Capital structure How should we pay for our assets? Should we use debt or equity? Working capital management How do we manage the day-to-day finances of the firm?
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Unformatted text preview: 1-1 Solutions to DB 1 What are the three major forms of business organization? Sole proprietorship Partnership General Limited Corporation S-Corp Limited liability company What is the goal of financial management? o Maximize the market value of the existing owners’ equity What are agency problems, and why do they exist within a corporation? Conflict of Interest between principals and agents Management goals and agency cost 1-2...
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This note was uploaded on 11/17/2011 for the course ECONOMICS 103 taught by Professor Tohmass during the Spring '11 term at University of Houston-Victoria.

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DB 1 Solutions - 1-1 Solutions to DB 1 What are the three...

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